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UBank Term Deposit Account

UBank Term Deposit Account

Min. Opening Deposit

1,000

Account Keeping Fee

0.00

A great fixed rate term deposit that could boost your savings.

  • Competitive interest rate 2.60% p.a. for 3 months
  • Invest from $1,000 to $2 million
  • Choose from a 1, 3, 6 9 or 12 month term
  • Receive a loyalty bonus for reinvesting

Product details

The UBank term deposit doesn't charge any unnecessary fees. If you decide to reinvest your term deposit, you will receive a 0.10% bonus rate on top of the standard interest rate.

UBank is currently offering one of the most competitive rates around, though the longest term it's offering is up to 12 months.

Product Name
UBank Term Deposit Account
1 month interest rate
1.90%
3 month interest rate
2.60%
4 month interest rate
2.61%
6 month interest rate
2.71%
9 month interest rate
2.71%
12 month interest rate
2.71%
Min Deposit
$1,000
Max Deposit
$2,000,000
Joint Application
Yes
Minimum Age Requirement
18
Covered by Government Guarantee
Yes (Up to $250,000 per person, per institution)

What are the features of the UBank Term Deposit Account?

While just about all Australian financial institutions offer their customers fixed rate term deposit accounts for their savings, you will notice differences in the features. Look at those that UBank is providing against what you get from other banks before making a choice in a term deposit account:

$0 Account keeping fees

You are not charged any monthly account keeping fees on your UBank Term Deposit account.

Small minimum investment of $1,000

You must be able to deposit at least $1,000 to start your term deposit.

Competitive interest rates offered

The interest rates applied to your balance are competitive and fixed over the length of the term. The rate amount increases with longer terms, but you will get the best return on your investment by choosing the six month term.

You're rewarded for your loyalty

If you roll over the entirety of your term deposit balance or more into a new term when it matures, you will receive a loyalty interest bonus of 0.10% per annum (p.a.) on top of the standard rate.

How is my interest calculated and paid?

Interest is calculated on your balance on a daily basis. For terms of less than one year, the interest will be paid to you at maturity. If you choose a one year term, you can opt for monthly payments or one payment at maturity.

Can be linked to any Australian everyday account

Called your “chosen bank account” by UBank, your linked account must be held by an Australian financial institution and be in the exact same name as the UBank Term Deposit. This account will be used to transfer funds and accept interest payments if you choose the monthly payment option.

Joint term deposit available

You are permitted to have a joint account holder for your term deposit.

Terms from 1 to 12 months

You can choose a one, three, six, or nine month term, or invest your savings for a full year. There are no long term investments available.

Backed by the Government Guarantee

UBank not only is a part of the Government Financial Claims Scheme, which guarantees deposits of up to $250,000, they are backed by NAB. This does mean that the funds counted towards the Financial Claims Scheme include the total you have in NAB accounts as well as with UBank.

Rules around withdrawing term deposit early

If you need to make an early withdrawal of your funds, you must let UBank know no less than 31 days prior. Interest will be adjusted by an amount that is deemed reasonable by UBank to cover its cost in maintaining your account. The amount requested to be withdrawn must be in increments of $500, and if a partial withdrawal results in a balance of less than $1,000 the account will be closed and all money transferred into your linked bank account.

Reinvestment options

You are permitted to provide UBank with maturity instructions at any point during your terms, but if they are not received within two days of the maturity date, the funds will be rolled into a new account with the same terms and prevailing interest rate at that time. You then have seven days to make any necessary changes to your new term deposit.

Available for personal use and SMSFs

This account is meant for personal purpose only or for a trustee of a SMSF.

Launch term deposit calculator

Pros

  • Low minimum investment of $1,000
  • $0 Account keeping fees
  • Wide ranges of terms from from 1 month to 1 year
  • Receive a loyalty bonus for reinvesting

Cons

  • 31 days advance notice required in case of withdrawing funds before maturity

How do I apply for the UBank Term Deposit Account?

If you appreciate the benefits of the UBank Term Deposit Account, you can visit UBank website and begin filling in your online application.

Eligibility to apply online

Before beginning, ensure that you are able to meet their eligibility requirements:

  • Minimum age. Applicants must be at least 18 years old.
  • Residency requirements. You must be an Australian resident for tax purposes living at an Australian residential address.
  • Depository requirements. A minimum of $1,000 is required to open a UBank Term Deposit Account.

Documentation to apply online

UBank also recommends having the following documentation readily available to assist in filling out the application:

  • Tax file number. Providing your tax file number (TFN) will help in ensuring that your interest earnings are taxed at the correct rate.
  • Identification. Your driver’s licence number if available will help to prove your identity. You can also use your passport or Medicare card.
  • Chosen bank account. The details of a separate Australian banking account in the same name for you to be able to transfer your deposit as well as receive any interest payments.

What happens after I submit the application?

Once you have submitted your application online, UBank will contact you via email with the details of your new term deposit so that you may initiate your first deposit.

What are the current UBank term deposit interest rates?

  • 1 Month Term Deposit Earns 1.90% p.a.
  • 3 Month Term Deposit Earns 2.60% p.a.
  • 4 Month Term Deposit Earns 2.61% p.a.
  • 6 Month Term Deposit Earns 2.71% p.a.
  • 9 Month Term Deposit Earns 2.71% p.a.
  • 12 Month Term Deposit Earns 2.71% p.a.

Customers who roll their term deposit over at the end of the term will be rewarded with a loyalty bonus of 0.10% p.a.

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14 Responses

  1. Default Gravatar
    FionaJuly 19, 2017

    I would like to specify some maturity instructions on my term deposit. It matures in Sept, but I would like to do it now. How do I go about this?
    Thank you

    • Staff
      HaroldJuly 20, 2017Staff

      Hi Fiona,

      Thank you for your inquiry.

      You are permitted to provide UBank with maturity instructions at any point during your terms. It would be nice to contact the bank directly to discuss your available options.

      I hope this information has helped.

      Cheers,
      Harold

  2. Default Gravatar
    MarshalMarch 1, 2017

    Can I open a term deposit for 7 months and if so at what rate?

    • Staff
      AnndyMarch 1, 2017Staff

      Hi Marshal,

      Thanks for your question.

      For UBank, and with most banks, you can open a term deposit account in a specified number of months as listed above. Your closest option may be a 6-month term deposit with 2.71% p.a. interest.

      You may compare other term deposit accounts here.

      Cheers,
      Anndy

  3. Default Gravatar
    JANICEJanuary 20, 2017

    I have a client, I am a Mortgage Broker, who has a Ubank Term Deposit that matured on 12/1/2017 and auto rolled over for another to 12/02/2017 as she wasn’t aware it was maturing due to Xmas , being away etc.
    We have a Home Loan settling 20/02/2017 that the $100k funds are to be used for , But a customer service officer told her today that as she requested TODAY to terminate Term deposit, that she must wait 31 days, from today , before she will get the money? Not on 12/02/2017? when it will mature?
    I am ex NAB staff and know that we will break term Deposits, losing the small amount of interest from break date till when maturing, under different circumstances where the money was needed.
    Any chance this Customer Service Officer may be wrong?

    • Staff
      MayJanuary 24, 2017Staff

      Hi Janice,

      Thank you for contacting finder.com.au – a financial comparison website and general information service designed to help consumers make better decisions. We do not represent UBank or any company we feature on our pages.

      No, the customer service officer from UBank is correct. As stated on the UBank’s T&Cs relevant to their Term Deposit product, if the account holder wishes to withdraw any funds from their term deposit before the end of its fixed term, they must give UBank at least 31 days’ prior notice.

      Cheers,
      May

  4. Default Gravatar
    natJanuary 4, 2017

    HI, Just wondering if i can open a Term Deposit for my 4 year old son with Ubank?

    • Staff
      AnndyJanuary 4, 2017Staff

      Hi Nat,

      Thanks for your question.

      Unfortunately, UBank Term Deposit Account requires that applicants must be at least 18 years old. You may want to check out Bank Australia Term Deposit as it does not require a minimum age to apply.

      Alternatively, you can check this page for other savings options for kids.

      Cheers,
      Anndy

  5. Default Gravatar
    PaulDecember 7, 2016

    Hi ,just wondering if im able to deposit more cash within the time frame of term

    • Staff
      MayDecember 7, 2016Staff

      Hi Paul,

      Thanks for your question.

      Yes, you can. Although you must be able to deposit at least $1,000 to start your term deposit.

      Cheers,
      May

  6. Default Gravatar
    DesleyAugust 29, 2016

    On a Fixed term deposit of just over $6000 how much interest will I get for 3 months?

    • Staff
      ClarizzaAugust 29, 2016Staff

      Hi Desley,

      Thanks for your comment.

      Based on your initial deposit of $6000 and UBank’s term deposit interest rate of 2.71% p.a. for the first 3 months, you will earn $40.65 in interest. You can also take a look and compare the potential interest earned using our calculator and table on our term deposit comparison page.

      Please note, we are a comparison website and as such, provide general advice only.

      Hope that has helped.

      Clarizza

  7. Default Gravatar
    natalieAugust 23, 2016

    Hi can you tell me how much i would get on a term deposit for 5,000
    thanks

    • Staff
      ClarizzaAugust 23, 2016Staff

      Hi Natalie,

      Thanks for your question.

      Do you know how long or what term you want to take up with UBank? The interest earned will depend on how long you keep your cash in the term deposit as each term may attract different interest rates. We have a calculator attached to this term deposit comparison table which will breakdown the current interest rates for each term and your potential interest. You can also open an account direct from this page. Simply type your deposit amount in the relevant field ($5000) and the select the term from the dropdown then click ‘Calculate’.

      Hope this helps.

      Clarizza

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